MasterCard 2007 Annual Report Download - page 14

In terms of our operating performance, we generated
worldwide gross dollar volume (GDV) of $2.3 trillion, up
14.4 percent in local currency terms over 2006. Also in
2007, worldwide purchase volume rose 15.7 percent in
local currency terms, to $1.7 trillion, driven by increased
cardholder spending on a growing number of our cards.
At the end of the year, our customer financial institutions
had issued 916 million MasterCard® cards, a 12.6 percent
increase over cards that had been issued at the end of
2006. In addition, the Maestro® brand mark appeared
on approximately 653 million cards worldwide at the end
of 2007. Meanwhile, transactions processed across the
MasterCard network reached 18.7 billion during 2007—
an increase of 16.2 percent from the previous year.
Of particular note was the extent to which overall growth
continued to be driven by rapidly expanding acceptance and
usage outside the United States. For the first time, just over
half of our revenue came from non-U.S. markets as we
accelerated the global expansion of electronic payments.
Our Strong Relationships Drive Business
At the heart of our strategy is our commitment to build
deep relationships with our customers. MasterCard account
teams are comprised of subject-matter experts in consulting,
marketing, processing, product and technology. The
composition of each team is tailored to the specific needs
of each customer, with a goal to drive profitable growth
for customers and, in turn, for MasterCard.
At the same time, MasterCard is fostering close relationships
with merchants, whether by increasing efficiency, devising
rewards programs or developing co-branded alliances.
Dear Fellow Shareholders:
Whenever I ask customers what they
look for in choosing a business partner,
the answer has little to do with size and
much to do with value. At MasterCard,
we deliver that value through our people.
It’s about the knowledge and insights we
bring to the table, our unique and powerful
consulting capabilities and our dedicated
account teams delivering customized
solutions — all of this together.
Our success is driven by the roles we play at The Heart of
Commerce™ — as visionaries, advisors, partners, advocates,
ambassadors, trailblazers and, above all, as catalysts for
change and growth. With the world accelerating toward
electronic payments, our employees deliver more value
than ever: driving sales and efficiencies for merchants,
convenience and satisfaction for consumers, better control
and compliance for businesses and, of course, growth
opportunities for our customer financial institutions.
Clearly, our employees drove our performance in 2007.
The Value We Deliver Shows in Our Results
In 2007, MasterCard revenue was $4.1 billion, a
22.3 percent increase from $3.3 billion in the previous
year. We generated net income of $1.0 billion for the year,
or $7.58 per share, on a diluted basis, compared with
$457 million, or $3.37 per share, in 20061
. Our 2007
results include after-tax gains of $254 million, or $1.87
per share on a diluted basis, from sales of the company’s
investment in Redecard.
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“Underlying our accomplishments
is the talent and drive of our people,
all of whom contributed to our
success in 2007.”
Robert W. Selander
President and Chief Executive Officer
(1) Net income and earnings per share, each of which excludes special items, are non-U.S. GAAP financial measures
that are reconciled to their most directly comparable U.S. GAAP measures in the financial table on the inside back cover.